tv Bloomberg West Bloomberg May 3, 2016 11:00pm-12:01am EDT
mark: i am mark crumpton, you are watching "bloomberg west." an american servicemen killed in iraq is identified as a navy seal. a u.s. official says he was killed during an attack by the islamic state on iraqi-kurdish forces in mosul. a resolution, demanding medical personnel and hospitals be protected against violence and attacks. >> when strikes end up hitting surgical wards, something is deeply wrong. explanations are hollow to parents burying their children,
and communities ready to collapse. mark: at least 20 people were killed in syria today, when rocket fire struck a maternity hospital in a government-held section of aleppo. this may be ted cruz's last stand in the race for the presidential nomination. if he loses today in indiana, it could make donald trump all but unstoppable. however, a trump defeat could increase the chances of a contested convention in july. for the democrats, they are still in a tight race. ms. clinton has 90% of the delegates she needs to become the nominee. global news 24 hours a day, from bloomberg world headquarters, i am mark crumpton. ♪
emily: i am emily chang, and this is "bloomberg west." we will begin to them numbers in a moment. plus, one year after losing her discrimination lawsuit, ellen pao is back, and has no regrets. she is even writing a book. i caught up with her for her advocacy venture and diversity in silicon valley. driverless minivans coming to a block near you. how chrysler is sliding into the space with google as copilot. first, to our relief. -- lead. cbs shares popping slightly in extended trading, better-than-expected first-quarter results. a surge in ad sales from the super bowl and grammy telecast. coming in at just under $4 billion, up 10% from the same quarter last year. profits were $473 million, up 20% year-over-year. but it was not all good news.
the company's cable network sales the client slightly. -- declined slightly. joining me now from new york, our editor at large, cory johnson, and bloomberg entertainment reporter, lucas shaw. >> les moonves talked a lot about it. advertising sales are up 31%. and at cbs, advertising is a 49%. a lot of that is from the super bowl. advertising is up 12% even if you take the super bowl out of the equation. emily: it is interesting, because cbs is exploring strategic options around the radio division. cory: it is certainly an interesting thing they are looking at. where they can drive balance sheet improvements from that. it is also just as interesting when you look at, as lucas was just talking about, the network thing was unexpected. there has been such a deterioration across the line for this business.
not only were they succeeding, they were succeeding while everyone else was failing. that 14% rise year-over-year that we saw, very specifically in their television business, which was most of the revenues. again, it is a place where they are expecting to see some weakness. but this was so much better than anyone else, 14% year-over-year growth is a powerful number for these guys, in their most important business. at a time when everyone else is hurting. lucas: you brought up the radio sales. one of the reasons they are trying to sell the radio business is to reduce their reliance on advertising, right now when it is driving huge numbers for their business. emily: we have been talking about the redstone situation, supposed to start this friday. where are we with that, and did i come up on the call? lucas: it did not, the competency trial begins on
friday, they ruled earlier this week that it will have to be deposed, and they will need a video deposition, they can stop at any time. one thing that came up on the call was a recent report about les moonves trying to get shares and unifying the share structure. he did not address that at all. emily: cbs also owns it showtime, in a race with hbo. i recently sat with the ceo of showtime, and here is what he said about keeping up with the competition. >> it is a complicated, 21st century media world. there is a lot of people clamoring for attention, and we have to stay at the top of the list. we have to continue putting out shows that feel like they have risk to them, but will make people pay attention. i think we are on the right path. emily: cory, how is showtime doing in the race? cory: showtime's number two to hbo. it has been a really impressive thing. when this split happens between
cbs, cbs was getting the weaker assets of been showtime. but they are really grown this into a powerful business. the year-over-year decline of 3%, not terrible, but not super strong. "billions" is not quite "house of cards." nonetheless, they had some success with "billions." "billions" did well, but compared to big hits on cable, not as well. emily: cory, you're sticking with me, lucas shaw, thank you so much. i do want to take about at the -- etsy for a moment. shares gaining an extended trading, after posting a surprise profit. earnings per share of one cents, while analysts had expected a loss of three cents. they have been offering paid services to sellers. but they still have a long way to go before winning back investors. the stock had fallen more than 60% over the year before tuesday's close.
now, cory, i do want to pick your brain a little about apple, a stock on the move. shares rallying today to snap and eight day slide. but it is in serious decline. over the last eight days, apple saw more than $74 million of its market cap of february. it remains on pace to the the biggest decline since the financial crisis. what is your outlook for apple? are they rising because they are so cheap? cory: i don't do stock prediction, people will pay what they are going to pay. but it is true that there is a different narrative going around wall street about apple and how the company is managed. i think there is a lot of concern about tim cook's behavior, when he e-mailed a rival network, to announce china sales are strong. it was a very unusual move, and they got attention because it was a bold statement.
any other ceo would seem like stock promotion. saying, we are doing a lot of success in china. with earnings out, it seems like china is quite weak for them. arguably, one of the most important or most important market in terms of where recent growth has come from. there are questions being asked on wall street about the credibility of management. and that is a new narrative for apple. but there was an interesting note yesterday, summing up the bear season and the bull season, as well. it talked about we are near a trough. that is the hope of the bulls, but certainly, there are new concerns on wall street about the management of this company. and that is a message i think we have not really heard until the recent quarter. that is resonating drought the -- throughout the market, as you can see with the share investors.
emily: our editor at large, cory johnson, thank you for breaking it down. another stock we are watching is yelp. it spiked in tuesday trading after hedge fund manager is taking a stake in the company and thinks it could be worth $55 a share. in his quarterly letter to investors, he said yelp stock has suffered due to missed expectations about upcoming, negative commentary. but he believes yelp can double its revenue by 2019, and would have no problems finding a buyer if they wanted a deal. coming up, my exclusive 'snversation with tax -- tech most controversial figures, ellen pao talks after losing a high profile discrimination case. that extended interview, next. ♪
emily: ellen pao is back, the former kleiner perkins investor has started a new advocacy group. project include will push for greater diversity at tech companies. she found herself at the that got of a case national attention when she sued them for gender discrimination. but she lost on all counts. what is she been doing since? i sat down with her earlier for an exclusive interview from oakland, california. it has been a year now since the verdict, and today you are launching project include to speed up diversity and inclusion in tech. why do you think this will work, when so many other things have not? ellen: we pulled together a team of women with almost 150 years of collective experience in tech.
so we have seen all the problems and issues, and have a set of recommendations for what people will be able to do to solve these problems. and we think that our years of experience in the research we have done will really make a difference. emily: you had made these recommendations to ceos and startups, what makes you think they will listen? ellen: we have a couple who have said they want to use our recommendations and are willing to participate in our starter program. and we also shared it with a bunch of ceos and engineering managers and other executives, and they say they agree with what we recommend. we are not telling them to fire everybody and start from scratch. these are just ideas that have come through actual experience, things people have done, things we know and are sure will work. so it is coming out of peoples experience, and the research that is out there. it is pulled together in one, integrative document or website that will help people do what they say they want to do in a
way that we think will actually work. emily: which companies are committed? ellen: we can't talk about that, we are still talking to people. but i'm excited that people are with what we agree are saying. emily: how will the work, are you looking for companies of a certain size, how will you do this? ellen: two different programs, one for startups, and the other is too early to talk about. the one for startups, we're looking for 18 startups that are between 25-1000 employees in size, and we want to have three meetings. one to get things started. what type of recommendations you will do, where you are in terms of your metrics today, a second one, three months in, to see where are we, how we are doing, what is working or not working. let us all learn together. then a third meeting to figure out, where do we end up, what
really works, what do we want to change in our recommendations based on these experiences, and what is next. emily: if a company as big as google or apple were talking, tens of thousands, where less -- where women make up less than 30% of the workforce, is it too late for them? ellen: i don't know, we are focused on the sizes of companies where we can make an impact, where this idea of innovating in changing really quickly on the fly is most appropriate and impactful. emily: what world your role personally in this initiative be? ellen: we pulled together this project out of just our spare time, enjoying the process of working together and getting a lot of things done. so this has been a passion project for us on the side. we will all continue in our own work, but continue to drive things forward as a team. emily: let's talk about your own work. you lost an incredibly high profile case on all counts.
you were interim ceo of reddit months, what are you doing now? ellen: i took about five or six months off, and that was great spending time with my family, going on vacation, getting a lot of sleep. then i started working on this and pulling together the team of people that are there today. like bethany blounch, laura gomez, erika baker. i know there are people i am missing. we have been working on this and pulling this together, and i am also writing a book. emily: what is it about? ellen: a lot of these issues, but animated with with personal stories. why we are so interested intact, -- in tech, and how we get
through and make it more a diverse environment. emily: are you looking for a job? people were nervous to even be seen with you after the trial, and it was a difficult process. ellen: when i was a kleiner perkins it was very hard. people inside and outside did not want to be seen with me. it has changed quite a bit since then. people are becoming more aware of these issues. it is not my one-story, it is a lot of people sharing their stories and having similar experiences. i've been working on the book, not looking for a job until i get this done. then i will see what happens. emily: my exclusive interview with ellen pao. still to come, what she has been up to since the controversial discrimination case ended a year ago. more of our conversation, in just a moment. now, in today's revolving door, amazon may have lost out to twitter on the nfl streaming deal. but the e-commerce giant is not giving up on sports.
emily: to part two of our exclusive interview with ellen pao, former kleiner perkins junior investing partner. i continued by asking about her life after suing her former employer for discrimination. would she do it again if she could, and why did she leave reddit where she served as interim ceo? you said you don't regret it, now that you have had a year to reflect, would you do it again? ellen: that is a good question.
i would do it again. but i will tell you the same thing many people told me, when i was talking to people who have sued, mostly in financial services. they all said they would do it again, but not recommend other people to do it. emily: what would you recommend to other women or minorities who feel they are being discriminated against? do they sue or go somewhere else they will be more appreciated? ellen: i think it depends on where you are. if you think people will listen, you should try to change from within. if you have the energy for the path you want to take. but i try to change from within, and it did not work. if it won't work, go somewhere else. emily: if you believe you were so wrong, why did you not appeal? ellen: the appeal process is very hard. it is so expensive, you're not matched in terms of resources. they have teams of pr people attacking you and your family. at the end of the day i thought, i got most of my story out, i
can write a book to tell the rest of what i want to share. and i think people heard what i had to say. emily: kleiner has more women partners than most top firms, and they say it was not sexism. they say you were not good at your job or deserve to be promoted. over the last year was there any part of you that thought, maybe they are right? ellen: no. i saw the other women who had similar things said about them and believed that the group of us were not treated fairly. emily: john recently became chairman of the firm and wanted to be a player coach. he told me he wants to focus on developing new talent. what would you have to say to him, any advice as he brings up the next generation? ellen: it would be great to include some women and underrepresented people of color in that group. emily: do you have any relationship at all? ellen: no. emily: you were interim ceo of
reddit. you did some bold things. you try to crack down on online harassment, but the community revolted. were you fired, did you feel pressured to leave? ellen: there are a lot of things that happened back there. i could write a book just about what happened at reddit in the last months. it is very difficult to change a community, once it has gone in a certain direction. what i hope other internet companies realize is, when you have problems, they scale with your company, and it becomes very hard to revive, once the genie is out of the bottle. emily: how can you make reddit safer for women and minorities? if you look at what is online, it is outright misogyny and rape and death threats. you were on the receiving end of
some of it. ellen: you have to build up a giant community team, and a bunch of technology. my understanding is, they are trying to do it. but the jury is still out on whether they will be able to. it is much harder to do now than it is to do for much smaller companies with smaller communities. it is hard work. you see that from twitter and facebook, and snapchat. going back and trying to fix things later is always harder. and that is why we are focused -- on the startup sides. if you can make your startup diverse and inclusive from the first ages, hopefully that grows with the company and the community and built-in all of the great things you want from the get-go. emily: are we harder on women in leadership roles and hold them to a different standard? i'm thinking of marissa mayer at yahoo!, or those in turnaround situations. someone call a glass cliff.
ellen: it is a hard question, because i do not know the details of what they're doing or what they have gone through. i know that the leadership roles will have a much lower number of women than there should be in there. there should be more women ceos, and there is definitely something going on that is making it harder for them to succeed, making it harder for them to get into those positions. emily: how do we get more women into technology? what is the answer? ellen: get all the girls in at an early age, i think that is one piece of the problem. the bigger problem is, once they get in, are they in an environment where they have a chance to succeed? are we given underrepresented people of color opportunities to learn and get hired, and get promoted and getting to roles where they can actually lead? part of that is, we have a lot of bias. part of that is we are not finding the people and making an
effort, because we are comfortable with things the way they are. a lot of things have to change for that to be a reality. emily: my exclusive interview with investor and entrepreneur ellen pao. wall street is getting worried about robots. and send tech is replacing its robots. you -- youaders of iew asset management at the industry most at risk for disruption by financial technology. they said the sector would feel the biggest changes, followed by banking, securities, insurance, and this could be bad news for financial employees. remarks made this week i executives at the milken global conference, said they should fear job replacement. another story we're following, a new king among desktop browsers, google chrome has edged out microsoft explorer. chrome owns just over 41.7% of the market in april.
this hour.ies donald trump is the presumptive republican presidential nominee after ted cruz quit his campaign. after months of denigrating his own home and -- opponent, donald trump praised ted cruz for suspending his campaign and took aim at hillary clinton instead. she will not be a great president, she will not be a good president, she will be a poor president. for the democrats, bernie sanders claimed an upset victory in him -- indiana.
it slowed hillary clinton's momentum. benchmark theock day after surprise budget cut. chp's biggest loser is down 8%. they had a deadly dam failure at their brazilian venture. the u.s. dollar strengthened on wednesday. era risks harming the nation's recovery. those are the headlines from bloomberg news. powered by euros all over the world. let's go to the latest in the markets right now. we will go to david for that. it is 30 minutes to noon
here in hong kong. it feels like a longer session that it is. let me get started, i will get to the bigger picture in a moment. have a look at this -- 8% decline. for various reasons. looming,rge lawsuit lower commodity prices, you have the fact that a lot of these stocks were bid up quite substantially. the clients across the banks as well. .etailers not bad south korean carmakers are also -- best april on record for kia. obviously, some of the bigger movers in southeast asia, shares are down for nine straight session. log a street -- longest streak in 18 months.
asia extending the losses for wall street overnight. will be surprised if we are attacking things up. the index should be down now by over half $1 trillion. ♪ emily: platejoy has plans to take on the meal delivery market. the personalized nutrition service announced a service to offered tailored nutrition in 22 metro areas. the deal puts it up against meal delivery competitors. but plate joy isn't pre-prep like the others. joining me is the ceo. how will the partnership actually work? >> we are living in a time where, when you ask people whether or not they are happy with how they are eating -- most people say no.
and it is interesting because fewer people are on diets today. and that is because people realize the key to eating healthy is to follow a healthy lifestyle. but in order to do that, it has to be personalized. that is where our company comes in. we use over 50 data points about how you eat and live to determine what you should eat each week. and then we provide you with a personalized shopping list that matches your preferences. emily: i have a family of four. how do i sign up? what is the work involved? >> as a subscriber, you come to platejoy.com. you take a personalization with quiz. details about your preferences, your husband's preferences. you mentioned you have two sons, maybe one is a big eater or has a peanut allergy. you get a menu for the week. you can click a button, and with that click, your list is
exported to instacart. in over 22 metro areas across the country, it can be delivered to your house. emily: but it is not pre portioned. like with blue apron. >> the biggest thing consumers lament about delivery services is about the excess waste. when you are giving someone just a tablespoon of olive oil, you need to provide a lot of packaging. these boxes are coming to you from fedex. they are packed with dry ice. consumers are environmentally conscious. however, with our instacart partnership, we are offering same-day delivery from your crozier -- grocer. the portions are tailored to your preferences. if you have five ounces of salmon, we can cut to serve based on what whole foods can provide. there is not the packaging waste. and we remember what you have week to week with our digital
entry service. we already know that you have a container of cinnamon at home. emily: how do you know how much i've used? >> we have an algorithm that remembers each week what you have used. we can confirm that. we make sure not to send you excess. emily: you have an interesting story. tell us about the inspiration. >> the inspiration is two part. i graduated from m.i.t. in neuroscience. i wanted to be a doctor and help people live healthier. what i started to realize is that there is still so much low hanging fruit, no pun intended, when it comes to prevention. over $70 billion in health care costs could be saved through better nutrition and food intervention for patients. and so that was part of the inspiration. and personally, i lost over 50 pounds myself. i was overweight and spent two years trying various diet delivery services. they were all really bad. i couldn't do it. i could not maintain the lifestyle afterwards that would allow me to keep the weight off.
i let platejoy solve the problem for myself. emily: how many active users, and what is the model? >> we charge 8-10 dollars per month. $59 for six months. $89 for a year. that gives you access to all the recipes, shopping lists. our customers range from the paleo mom with a gluten-free child, to a couple trying to eat a plant-based diet. we have employers that use platejoy for their employees. we work with nutritionists directly. because they often only have a quick 30 minute session with patients. and they want to be able to provide them help long-term. emily: interesting. platejoy cofounder and ceo. congratulations on your new partnership with instacart. thank you so much for joining us. now, speaking of on-demand delivery -- "just eat," a london-based market place for takeaway saw shares soar after
it will see a boost to full-year sales and profits. this from increased fees its charging u.k. restaurants for online take-out services. it boosted the market value $4.1 billion. the company boasts 14.2 active million users. it is partnered with more than 64,000 restaurants. opening a space in south korea. he joins us to explain why asia is so important to the country. >> very excited to announce that we are continuing our expansion into asia. at the beginning of the year, we basically sat down and identified that asia was a really important market for us. emily: "we work" recently raised under half $1 million. take a listen to what vincent had to say about that.
>> if you focus on valuation, you are focused on the wrong thing. i think what you have to focus on is the experience of your customers. in this case, it is our members. that is really what we are focused most on the company. emily: nba commissioner david stern joined us from the conference to talk about expanding the nba brand. >> social media is the next step in the digital evolution, which allows sports leagues, teams, players, to connect with fans all over the world. mba -- nba has somewhere between 1 and 2 billion social media followers, etc. when you consider the teams, the leagues, the players -- that will be a huge driver of global growth. emily: stern that plays an advisory role at greylock capital. you can find a full interview on bloomberg.com. coming up, the key to fighting the world's most drug resistant
emily: the rise of drug-resistant bacteria created a need for new antibiotics. but it is not so easy to synthesize these new drugs. the answer might be in nature. we followed one microbiologist searching in the most unlikely place for the key to fighting superbugs. >> there is a quiet crisis going on in hospitals around the world right now. certain strains of bacteria no longer respond to any known
antibiotics. there is a word for these antibiotic resistant bacteria -- we call them superbugs. and unless we can develop new antibiotics, superbugs could make a lot of people very very sick. >> we are racing against the clock. you already see a number of people who have died a meaningless death because they had these minor infections. it is imperative for us to look into new drugs and new sources of what could be the habitat for new drugs. ♪ there are lots of steps involved in this kind of research. >> look at that one. >> first off, you need to find
the appropriate case. you go in and collect samples. >> what the doctor is looking for in this cave is in fact bacteria. not the infectious bacteria that makes us sick, but benign bacteria that can produce antibiotic compounds. this is how many antibiotics were first developed. in this isolated cave, she is hoping to find new species of this bacteria that no scientists has ever seen before. >> we look around, what kind of things are you looking for? >> basically, it could be anywhere. in a soda straw, lollipops, cauliflowers, all of these could be micro-habitats where such unique microorganisms could live in. ♪
♪ >> you get the sample back to the lab. you will try to isolate as many bacteria as you can. >> do you want to look at the other soda straw? >> sure. oh yes. look at that. that looks more promising, this side. it is a painstaking process. it is like finding a needle in a haystack. >> yeah, maybe six haystacks. [laughter] >> the doctor and her students extract the most promising bacteria and try to grow them in greater numbers on lab plates. >> these are our cave bacteria grown from the iron curtain cave. you can see that there are different populations of
bacteria growing. >> then the real test. a sample of the cave bacteria is placed on a dish of e. coli. gap indicates antibiotic activity, a successful find. the doctor has found many bacteria that can kill e. coli. be hard part is what comes next. actually developing a life-saving drug. it could take up to 25 years. >> it is hard. i have already been doing this for 14 years. last year, we came closer to a chemical structure. but it turns out, actually it was very unstable. we lost the compounds that we isolated from the bacteria. so now we come back to the drawing board. i am still a human being. [laughter] i am still easily disappointed.
but i got myself away from those kind of negative thoughts. because i would remind myself that it doesn't come easy. nothing comes easy. and i think the reward at the end will be well worth it. emily: staying in biotech, biogen will spin off a team -- hemophilia drugs business into a new publicly traded company possibly worth up to $5 billion. it gives the massachusetts company the freedom to focus on therapies for neurological diseases like multiple sclerosis and alzheimer's. the spinoff is been approved by the board and should be completed by the end of 2016 or early 2017. biogen shares are down 27% to date. coming up, soccer moms unite. google is teaming up with fiat
on self-driving minivans. and soccer dads too! what does it mean for the two companies? and tomorrow, do not miss hurricane or with us. later in the morning, we sit down with the head of cbs to talk about the media giant's latest results. that interview, 11:00 a.m. new york time. more of "bloomberg west" next. ♪
they hope to improve its network in an increasingly competitive market. the cost cuts help make up for a much lower amount of subscribers than disputed. the actual number came in at 56,000. sprint is currently the number 4 carrier in the united states. uber's partnership with the chinese payment app alipay has gone global. it's active users can now use the app to pay uber fares in any of the 60 countries where it operates. it has been particularly important for growth in china, where the deal has been in place since 2014. there, uber went from owning 1% of the market in 2015 to roughly 33% by the end of the year. now, fiat chrysler has reached an agreement with google to create a fleet of autonomous minivans. the deal is the first phase of a
joint project for the company to develop about 100 self driving prototypes based on the chrysler pacifica minivan. however, fiat will not be licensing any of the goals technology and the two companies remain free to work on similar projects with other partners. we are joined by our bloomberg news reporter and tech report. david, i want to start with you. what do you make of the two parties? why would google pick fiat chrysler, and vice versa? david: google has talked to carmakers about doing a deal. they wanted to share the testing data from developing the cars, share intellectual property, and jointly develop the actual brain to make a self driving car work. google wants to keep control of all that. that is what they bring to the party. fiat chrysler isn't developing any of their own self driving technology right now. they had much less leverage when
bargaining. they can just go to google to get the technology, and google can keep everything for themselves. fiat chrysler can just a sickly -- just strictly be the manufacturer for them. emily: these automakers have been based in europe for a long time. you don't think of parents with kids as the test case for self driving cars. does this point towards a uber ride sharing model? >> i think that is what most people are expecting. what will happen 15-20 years down the line. i don't necessarily agree with the kid's front. if you have screaming children in the back of the car, you don't want to concentrate on driving. it's about who has the data and who has the lower margin construction of vehicles. emily: the ceo of fiat chrysler has an interesting view on this. he thinks that too many automakers are working on the technology, and that there should be more collaboration.
in fact, consolidation. david: he has been beating this drum for some time. it was a year ago that he was pushing for megamergers among automakers so they could take the huge costs of development and to defray those costs over many more millions in vehicles sold. general motors did not want to deal with him. he has to find someone else to develop this technology. he has mentioned apple as a partner. turned up he ended up with google for right now. that is what he had to do. he is not developing it himself. he thinks it is too expensive. he could not get general motors to piggyback. now he has gone to the big silicon valley company, which is google. emily: it seems like other european carmakers not so open to working with google. why? alex: we saw in europe the three big german carmakers. daimler, bmw, and audi.
they bought nokia's mapping service. and that was a pure power play to keep google out of their cars. a lot of people seem to think that google wants to shove their sensors onto a vehicle, know where people are going. wherever it might be. and the carmakers in europe know that is where the incremental value lies. the high-margin growth could potentially come from this down the line. they don't want to sacrifice that to google. emily: in the race for self driving cars, is google pulling way ahead? david: it is hard to say, but they have more miles tested than anyone. they brag about 1.4 million miles of autonomous driving. this is what the deal is about. to really get these tested and on the road, you need many millions more miles. they've only got so many lexus
suv's with their technology in it. they need cars, they do not have plants. that is why they are getting 100 minivans. emily: thank you both. it is time to find out who is having the best day ever. today's winner is shane smith, cofounder and ceo of vice media. vice and espn have announced a new short form series that will air on both channels. vice continue its run of successful partnerships that began in 2013 when it aired its hbo documentary show. the espn series will focus on athletes in sports outside of the mainstream sports realm. that does it for this edition of "bloomberg west." tomorrow, a full breakdown of earnings after the bell from tesla, zynga, an fitbit. that is all from san francisco. ♪